From the course: Pricing Strategy: Value-Based Pricing
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Define your price carrier strategically
From the course: Pricing Strategy: Value-Based Pricing
Define your price carrier strategically
- An important question you need to address is not how much you're going to charge but for what. In other words, where do you put the price tag on? This is what we call the price carrier decision. For example, when we lived in Phoenix, Arizona I would sometimes go to McDonald's with my two kids. What McDonald's offered was more than burgers, fries, and drinks. It offered an air-conditioned playground, which is like heaven on earth when the outside temperature hits 116 degrees Fahrenheit. While the full offer was value to me McDonald's only charges for burgers and fries but not for the playground. In other words, the price carrier is burgers and fries. The price carrier decision also includes the question whether you should sell your total offer as a bundle for one price or whether you should sell each component separately. Other price carrier decisions are making a difference between input and output. For example, when you hire a lawyer do you want to pay her by the hour, which is…
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